Indiana collected $1.76 billion in General Fund revenue in August, $23.8 million, or 1.4%, above the forecast and $191.6 million, or 12.2%, above August 2025, according to the State Budget Agency’s monthly revenue report.
The report, released by Chief Economist Hari Razafindramanana of the Office of the Chief Economist & Tax Analysis, measures collections against the state’s Dec. 18, 2025 revenue forecast.
Through the first two months of fiscal year 2027, which began July 1, the state has collected $3.48 billion. That is $46.3 million, or 1.4%, above the forecast and $309.8 million, or 9.8%, above the same period last fiscal year.
Measured against the budget plan’s monthly estimates, which the report says are based on the April 16, 2025 forecast adjusted for that year’s legislative action, year-to-date revenue is $146.8 million, or 4.4%, ahead.
The agency said the better-than-expected performance so far is largely driven by individual income tax payments related to investment income and business earnings. For August, it said slightly higher-than-expected income tax collections outweighed lower-than-expected collections from sales tax, interest and miscellaneous revenue.
Individual income tax collections totaled $652.4 million for the month, $25.1 million, or 4.0%, above the estimate and $163.9 million, or 33.6%, above August 2025. Withholding came in $20.8 million above the estimate and $168.2 million, or 20.3%, above last year. Other individual income tax collections, net of refunds, were $4.3 million above the estimate but $4.2 million below last year.
Corporate tax collections totaled $15.1 million, $9.9 million above the estimate and $11.6 million above August 2025.
Sales tax collections totaled $983.0 million, $6.5 million, or 0.7%, below the estimate but $31.7 million, or 3.3%, above August 2025. The agency said August collections mostly reflect July economic activity and compared the 3.3% growth with year-over-year growth of 0.6%, 4.4% and 5.4% in the three preceding months.
Year to date, sales tax collections of $1.97 billion are $0.5 million below the forecast and $82.1 million, or 4.4%, above last year.
Interest revenue totaled $28.3 million in August, $3.9 million, or 12.2%, below the estimate and $15.4 million, or 35.3%, below August 2025. Year-to-date interest collections are down 28.7% from last year, according to the report.
Cigarette tax collections totaled $50.4 million, $2.5 million above the estimate and $0.5 million above August 2025. The agency said year-over-year comparisons reflect changes in law under House Enrolled Act 1001 of 2025.
Racino wagering taxes brought in $11.2 million, $0.6 million above the estimate. Year-to-date riverboat wagering collections of $40.4 million are $5.0 million, or 11.0%, below the forecast.
Year to date, individual income tax collections total $1.18 billion, $36.4 million above the forecast and 20.7% above last year. The agency said year-over-year comparisons are affected by the timing of payments and refunds, the reduction in the state individual income tax rate and changes tied to the pass-through entity tax.
The agency said September, December, January, April and June are the most important revenue months for individual income tax because of payment due dates. For corporate taxes, those months are September, December, April and June.
